PRESENTED BY

Humaira Arshad 7104

Sara Sohail 7149

KSE-100 INDEX

Azam Ahmad Abbasi

Khalid Mansoor

Table of Content

• Stock Exchange & History of stock exchange• Purpose of stock exchange • Role of stock Exchange • Stock Exchange as a part of financial markets • Hierarchy of stock exchange • Top listed stock exchanges and listing requirements• Stock exchanges in Pakistan • KSE & types of KSE indexes • Objectives of KSE100 index & performance of KSE• KSE 30 index • KMI 30 • KMI 30 sectors & companies• NO of companies in sectors• How to calculate KSE 100, KSE 30 ,& KMI 30 INDEX

History • Stock exchanges can be traced to 12th century

France, when the first brokers are believed to have developed, trading in debt and government securities.

• Unofficial share markets existed across Europe through the 1600s, where brokers would meet outside or in coffee houses to make traders.

• The Amsterdam stock exchange created in 1602, became the first official stock exchange.

• By the early 1700s there were fully operational stock exchanges in France and England , and America .

• Today ,stock exchanges operate around the world, and they have become highly regulated institutions .

• Most stock exchanges began as floor exchanges , Where traders made deals face-to-face.

• The largest stock exchange in the world, the New York stock exchange.

Purpose Of Stock Exchange

• Established for the purpose of assisting regulating and controlling business of buying , selling , and dealing in securities .

• Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities .

The Role Of Stock Exchange • Raising capital for business.• Mobilizing saving for investment .• Facilitating company growth .• Profit Sharing .• Creating Investment opportunities for small

investors . • Government capital-raising for development

projects .

Investment in Financial Markets

• There are a wide variety of markets in which one can invest money

• Bonds • Forex • Derivatives• Physical Assets • Stock Market

KSE Vision & Mission statement

Vision Statement

“To be a leading financial institution , offering

efficient , fair and transparent securities in the market and enjoying full confidence of the investors.”

Mission Statement

“ To reflect country’s economic health and behaviour and play its role for the growth ,

Development and prosperity of Pakistan “

KSE• KSE 100• KSE 30• KMI 30

Objectives of KSE 100 Index

The primary objective of the KSE 100 index is to have a benchmark by which the stock price performance can be compared to over a period of time . In particular, the KSE 100 Is designed to provide investors with a sense of how the Pakistan equity market Is performing Thus the KSE 100 is similar to other indicators that track various sectors of the Pakistan economic activity such as the gross national product ,consumer price index , etc.

How To Calculate KSE 100 Index ?

The formula to calculate KSE 100 Index is :

Methods Of Calculating KSE 30 Index

Methods To Calculate KSE 30 Index

• Launched on full market capitalization and is now being shifted to free floated market capitalization.

• BASE Previous day Index• SUM OF COMPANIES 30• BASE as New Divisor on day next

Calculation of KSE 30 Index

• Formula for calculating KSE 30

New Divisor = Revised Market Cap.

Index as on Day 3

Index = Market Capitalization

New Divisor

Calculation of KMI 30